The net profit of the banking sector in Uzbekistan by the end of 1Q24 stood at 2.4 trillion UZS, marking a 22.3% decline compared to the same period in 2023, KAP DEPO reports on May 14.
A significant aspect of this performance is the National Bank of Uzbekistan's share in the sector's profit, which reached 19.5%, up from 14% recorded at the end of 2023. This increase indicates the bank's growing influence within the banking sector and its pivotal role in shaping financial outcomes in the country.
Despite the overall decrease in net profit, interest income witnessed a surge, rising by 37.4% to UZS 25.9 trillion ($2.03 bn). Similarly, non-interest income experienced moderate growth, reaching UZS 13.0 trillion ($1.02 bn), reflecting diverse revenue streams within the banking sector.
Furthermore, both the loan and deposit portfolios demonstrated positive growth trajectories. The loan portfolio expanded by 17.1% year-on-year, reaching UZS 478.2 trillion ($38 bn), indicating increased lending activities by banks. Similarly, the deposit portfolio saw a growth of 18.0%, totaling UZS 243.1 trillion ($19.1 bn), highlighting robust savings behavior among consumers.
Interestingly, the ranking of banks within the sector witnessed notable changes compared to the previous year. Agrobank, Aloqabank, and Ipoteka bank, dropped out of the top 10 in Q1 2024, making way for KDB Bank Uzbekistan, Davr Bank, and Asia Alliance Bank.
Among the key players, Kapitalbank maintained its position as one of the largest private banks, securing the second spot after the National Bank of Uzbekistan. The slight difference in profit between the two banks, amounting to UZS 87 bn ($7 mn), underscores the competitive landscape and the ongoing efforts of banks to optimize performance and enhance profitability.
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